The chief executive officer of Pakistan Revenue Automation Limited (PRAL), Amir Malik, has declined a temporary extension in his tenure, a decision that comes at a sensitive time when the government is weighing whether to restructure or wind down the entity. PRAL, which serves as the backbone of Pakistan’s tax technology system, has been at the center of uncertainty following Prime Minister Shehbaz Sharif’s directive last month that initially called for its closure before clarifications pointed towards restructuring.
According to correspondence reviewed, the PRAL board had offered Malik an extension until a new chief executive was appointed. However, Malik declined, arguing that neither the PRAL board nor the Federal Board of Revenue (FBR) defended the organisation in discussions with the prime minister. His extended tenure, which followed an initial three-year term ending in February, is due to conclude next week. The position of chief executive has not yet been advertised, though a senior FBR official confirmed that the government intends to appoint a new full-time head from the market.
PRAL management and its board later issued a joint statement clarifying that ongoing digital services would continue without disruption, despite the restructuring plans. The statement explained that PRAL will evolve into a modernised, state-of-the-art entity designed to provide enhanced functionality, financial independence, and technological innovation as part of FBR’s wider digital transformation strategy. It assured that the transition would be gradual and seamless, ensuring stability for employees, users, and stakeholders. Still, the uncertainty has unsettled staff, with some senior officials already resigning and others concerned about job security.
Board members suggested Malik had sought reappointment rather than a temporary extension and maintained he could still apply for the post once advertised, noting his experience could give him an edge. Within PRAL, senior management has argued that the organisation has been unfairly blamed for outdated hardware and software, some of which has reached the end of service life. These legacy systems, including STARR and FASTER platforms that process tax refunds but still run on Oracle 8, have been cited as causes of operational disruptions. Despite a foreign loan secured in 2019 to upgrade systems, deadlines for modernization have long since lapsed.
PRAL has also struggled to recruit skilled private-sector professionals, including key roles such as chief financial officer, chief product officer, and heads of software platforms. Shortlisted candidates were submitted for board approval but delays in finalisation have persisted. Against this backdrop, FBR, which depends heavily on PRAL for tax processing and system management, has extended the income tax filing deadline to October 31, 2025, a move that may provide space to avoid disruption during the restructuring process. While PRAL’s leadership transition remains uncertain, its role as the digital backbone of the tax system underscores the critical importance of ensuring stability as Pakistan pursues its digital transformation agenda.
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